Jindal Strips Gung-ho On Exports To China
(by Candida Moraes, Mumbai - April 28, 2003 FINANCIAL EXPRESS)

With stainless steel becoming the preferred product in the global market, and the fact that the product has started showing a steady growth because of the substitution effect of carbon steel for stainless steel, Jindal Strips Ltd (JSL) plans on improving its global positioning as well as targeting the domestic markets in the coming years. The company is also planning to promote value-added products in a big way in the domestic market in the current year. JSL director (finance) Arvind Parakh said: "Given the fact that China's demand for stainless steel has been increasing, JSL sees a very good market opportunity. We are very well positioned, and growth in China is going to be tremendous. We also see a growth of value-added products not only in China but also in the domestic market."

World demand has expanded by 5.8 per cent but growth in China has been in excess of 17 per cent annually. Over the past two years, the growth in this sector has been over 30 per cent. JSL feels that considering the similarities between the development in China with the development of Japan, the demand for stainless steel may increase by about 9-10 per cent. The company believes that as a result of economic growth and rise in people's standard of living, the consumption of stainless steel is expected to grow in areas like architecture building construction (ABC), automotive, Railways & transport and industrial applications.

JSL's exports to China constitute 90 per cent of the company's total exports in FY 2003 against 64 per cent in FY 2002. With regard to developing the domestic market, Mr Parakh felt that though India still has a long way to go, there is a lot of potential for stainless steel, especially in the automotive and infrastructure sectors, water and waste treatment systems, industrial applications and designer products. The growth of stainless steel is about five-six per cent and people are now looking at long-term costs. Therefore, there is a lot of potential both in the country as well as in the global markets. JSL is now focussing on building the 'Jindal Stainless' brand. The company has a design centre which, in conjunction with various designers and architects, conducts workshops on the promotion of stainless steel in the ABC and other growth areas. It is also focussing on the development and sponsoring of furniture in Delhi in collaboration with MCD, NDMC, DDA and CPWD. The company at present is also concentrating on the development of designer lifestyle products which, the company feels is a potential growth area for them.